DENVER, March 5, 2012 /PRNewswire/ -- Newmont Mining Corporation (NYSE: NEM) (the "Company") today announced the pricing of its public offering of $2.5 billion of senior notes, consisting of 3.500% senior notes due 2022 in the principal amount of $1.5 billion and 4.875% senior notes due 2042 in the principal amount of $1.0 billion (the "Notes"). Subject to customary conditions, the offering is expected to close on March 8, 2012. The offering is being made pursuant to the Company's shelf registration statement filed with the Securities and Exchange Commission.
The Notes will be senior unsecured obligations of the Company and will rank equally with the Company's existing and future unsecured senior debt and senior to the Company's future subordinated debt. The Notes will be guaranteed on a senior unsecured basis by the Company's subsidiary Newmont USA Limited.
The Company estimates that the net proceeds from the offering will be approximately $2,460 million, after deducting estimated discounts and expenses. The Company intends to use the net proceeds of this offering for (i) repayment of the outstanding balance under the Company's senior revolving credit facility (which was drawn upon in January and February 2012 principally to repay the Company's 2012 convertible senior notes and to pay a portion of the payments in connection with the exercise of the early purchase option under the sale-leaseback for the Company's refractory ore treatment plant in Nevada)(ii) settlement of certain forward starting swaps contracts, (iii) remaining payments to be made during 2012 in connection with the exercise of the early purchase option under the sale-leaseback agreement relating to the Company's refractory ore treatment plant in Nevada, and (iv) general corporate purposes (which may include funding associated with exploration, the development of the Company's project pipeline or dividends or other forms of capital return to the Company's shareholders). The Company intends to place the remaining proceeds in short-term liquid investments.
Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are acting as the joint book-running managers for the offering. Copies of the prospectus supplement and accompanying base prospectus for the offering may be obtained from Citigroup, Brooklyn Army Terminal, 140 58th Street, 8th floor, Brooklyn NY 11220 or by telephone at (877) 858-5407, J.P. Morgan Securities LLC, National Statement Processing, Prospectus Library, 4 Chase Metrotech Center, CS Level, Brooklyn, New York 11245 or by telephone collect at (212) 834-4533. An electronic copy of the prospectus supplement and accompanying base prospectus for the offering may also be obtained at www.sec.gov.This news release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The securities being offered have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon the accuracy or adequacy of the prospectus supplement or the shelf registration statement or prospectus.
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